CBI issues LOCs against diamond jewellery export firm directors

Posted on February 27, 2018 from Delhi, National ι Report #180853

New Delhi, Feb 26 (IANS) The CBI has issued Look Out Circulars (LOCs) against the directors of Delhi-based Dwarka Das Seth International regarding its ongoing probe into a loan fraud case totalling Rs 389.85 crore in the Oriental Bank of Commerce (OBC).

A Central Bureau of Investigation (CBI) source privy to the investigations said that the agency issued LOCs against Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh -- the directors of the diamond jewellery exporting firm in Karol Bagh.

The agency had registered a case after OBC filed a complaint on August 16 last year regarding its bad loans or non-performing assets (NPAs) of 2014 after the company folded up and Seth fled the country.

The CBI has begun efforts to trace the India-based directors and partners of the company.

The bank complaint had alleged that Dwarka Das Seth International took loans through letters of credit and other facilities for gold jewellery export/import between 2007 and 2012 but failed to pay back the money.

A bank probe found that the company indulged in round-tripping of funds through fictitious companies abroad and utilised funds by discounting bills based on letters of credit of foreign banks, which were either non-existent or had negative ratings.